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Delta (age 22) purchases a fully discrete 2-year deferred, 3-year endowment insurance with a benefit of $100,000 upon death and a benefit of $100,000 if
Delta (age 22) purchases a fully discrete 2-year deferred, 3-year endowment insurance with a benefit of $100,000 upon death and a benefit of $100,000 if the Delta is alive at the end of the period. Premiums are payable at the beginning of each year and are calculated using the Equivalence Principle. The insurance company uses the following mortality table in its calculations: x lx 20 1,000,000.0 21 992,998.6 22 986,043.4 23 979,133.7 24 972,269.0 25 965,448.6 26 958,671.9 27 951,938.0 28 945,246.3 29 938,595.9 30 931,986.1 Delta (age 22) purchases a fully discrete 2-year deferred, 3-year endowment insurance with a benefit of $100,000 upon death and a benefit of $100,000 if the Delta is alive at the end of the period. Premiums are payable at the beginning of each year and are calculated using the Equivalence Principle. The insurance company uses the following mortality table in its calculations: x lx 20 1,000,000.0 21 992,998.6 22 986,043.4 23 979,133.7 24 972,269.0 25 965,448.6 26 958,671.9 27 951,938.0 28 945,246.3 29 938,595.9 30 931,986.1
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